If they lease the rental, then you convert the holding deposit into the security deposit. 

My plan is to hopefully find a place that is either 2 bedroom that can be easily converted into a 3 bed, or possibly just a 3 bed.

Purchase price: $528,000 Cash invested: $528,000 Three bedroom converted cape.

Great idea Barbie but I would purchase a 3-4 BR SFR (with a detached large garage) that has the capability of spawning a JADU from one of the bedrooms bathrooms and converting the garage into an ADU.

This a rehab with the purpose of reselling or converting to a rental.

We currently live in a condo so we don't have a way to convert anything into an ADU.

Hello All, My name is Randall Owens and I am looking for serious help in regards to a  2 flat building with a unfinished basement that I plan on converting to a 3rd unit in Chicago.

Then convert to PDF.

Atleast with the boiler you can convert to baseboard and assuming the units are electrically metered force them to pay for heat through that. 

@Ross Lantz if you are asking about converting a single family home into a multi family then you are in for a real challenge.